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1 st May 2016 – 30 th April 2017 © 2016 The Association of Residential Managing Agents Ltd ANNUAL REPORT 2016–2017
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Page 1: ANNUAL REPORT · 2018-01-03 · Rendall & Rittner Ltd. Michael Lee BSc (Hons), MRICS, RICS registered valuer Rendall & Rittner Ltd. ... as a company limited by guarantee in 2004.

1st May 2016 – 30th April 2017

© 2016 The Association of Residential Managing Agents Ltd

ANNUAL REPORT2016–2017

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2 Annual Report 2016–2017The Association of Residential Managing Agents

“Progress has been made in a number of important areas. The start of 2017 launched us into the final year of the first round of ARMA external audits. The output from the process has been most encouraging. Standards really do seem to be improving and compliance with the stringent requirements of ARMA Accreditation is heartening.” Chairman, William Heneker BSc (Hons), FRICS, FIRPM

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3 Annual Report 2016–2017The Association of Residential Managing Agents

5

10

12

13

16

22

26

30

35

37

38

42

Chairman’s Overview

ARMA Governance Chart

The ARMA Secretariat Team

ARMA Governance

Financial Report

Technical Committee Report

Membership Report Audit Report

Training Report

Ombudsman Report

Working for Members — Policy and Campaigning

Marketing Report

Report Contents

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4 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA Independent Regulator & Panel Annual Report 2016–2017

ARMA Regulation

Overview

Disciplinary Cases

Accreditation Oversight

Conclusions

48

49

51

52

55

55

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5 Annual Report 2016–2017The Association of Residential Managing Agents

“Nigel Glen and Noella Lee further settled into their respective roles. They are both playing a key part in raising our industry profile as well as providing invaluable strategic and operational support to the Executive Committee.”

This has been a year of change at ARMA and there is so much to report. The AGM in November 2016 saw me taking over the mantle as Chairman from Martin Perry. I owe a debt of gratitude to Martin, who provided me with much guidance and advice in anticipation of my important new role. I am absolutely committed to the organisation and will do my best to serve you well throughout the course of my two-year tenure.

At the same time, Martin sadly decided to step down from Council to concentrate on running his property management and lettings business in Bath after a six-year stint, including two years as Chairman. His input at the top level is sorely missed. As a consequence of losing our Vice Chair, during this financial year Council nominated Tony Hymers as Chair-Elect and Sue Petri was nominated to sit with Tony and I on the Executive Committee. Both are considered excellent appointments; Tony owns Burlington Estates, one of our small to medium-sized Members and Sue, as Managing Director of FirstPort Bespoke Property Services, represents one of ARMA’s largest Members.

Other changes during the year included the election of three new Council members at the 2016 AGM; Colin Cohen, Michael Jacobs and Tim Townsend. All have thrown themselves into life at ARMA, engaging on a variety of sub-committees and providing valuable

Chairman's Overview William Heneker BSc (Hons), FRICS, FIRPM

William Heneker BSc (Hons), FRICS, FIRPM

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6 Annual Report 2016–2017The Association of Residential Managing Agents

input into the overall running of our organisation. It mustn’t be forgotten that every Council and Committee member give their time, experience and commitment entirely voluntarily and without any cost to the organisation. We are all therefore very lucky to have an experienced team of individuals willing to participate in such a dedicated manner.

Turning to the Secretariat side of the business, Nigel Glen and Noella Lee further settled into their respective roles as Chief Executive Officer and Chief Operating Officer. They are both playing a key part in raising our industry profile as well as providing invaluable strategic and operational support to the Executive Committee. ARMA’s Technical Officer, Helen Christie, became a mother and so has been temporarily absent from the office for the period of her maternity leave. Helen’s maternity cover has been provided by Lisa Warren, whom many of you will know from her presentations at Regional Briefings on accounting matters.

Elsewhere within the organisation, progress has been made in a number of important areas. The start of 2017 launched us into the third and final year of the first round of ARMA external audits that are conducted by RICS. This, therefore, included all Members whose accreditation had been subject to an Improvement Plan. By the end of 2017, every Member will have had their first audit and the process will then follow on into 2018 with the second round, auditing Members on their compliance with a different set of Standards. The output from the audit process has been most encouraging. Standards really do seem to be improving (as we expected) and compliance with the stringent requirements of ARMA Accreditation is heartening. It demonstrates both a willingness and an ability

Chairman's Overview (cont.)

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7 Annual Report 2016–2017The Association of Residential Managing Agents

of Members to adhere to improved rules and working practices that help instil public confidence and trust in us all. The number of Member complaints during the year that required the involvement of the Regulator was just a small handful.

In April 2017, we celebrated our first anniversary at our new Wimbledon offices. How time flies. This venue, unlike the last, is fit for ARMA as a “grown-up” organisation and through the year has played host to numerous Council and Committee meetings as well as a number of training courses, all of which save cost in hiring venues elsewhere. It also streamlines operations.

On the financial side, in conjunction with our external accountant, a Reserves Policy has been developed for the first time to try and ensure that we don’t stockpile too much or too little of our Members’ cash. We will, of course, continue to develop this policy over time as the organisation continues to flourish.

Conference. This helped provide a useful insight into Members’ businesses and how they are performing against the competition. This initiative is a three-year project and Members are encouraged to participate. Those who took part found the outcome beneficial.

“I also confirmed that I wanted to continue to increase our influence in the leasehold sector and to maintain our involvement in shaping leasehold legislation. It clearly demonstrates our collective ability to continue to punch above our weight in the sector.”

Chairman's Overview (cont.)

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8 Annual Report 2016–2017The Association of Residential Managing Agents

The website and membership system received an overhaul this year, with both new functionality and integration with ARMA’s new accounting software to help streamline the administration of some of our operations. It also allows Members to set up individual access accounts to the Member’s Portal for their property managers, allowing them access to their own content and to make booking requests for training courses and Regional Briefings as well as the Annual Conference and Dinner. There is still work to be done, but despite some inevitable teething troubles during its implementation, I do hope you will agree that the new system provides a distinct enhancement.

On the corporate governance side of the business, an update of the Byelaws, as well as the Memorandum & Articles of Association, neared completion. This was arguably one of the less enviable tasks for the relevant sub-committee, so my thanks go out to those hardy participants for their time and perseverance. The amended Byelaws will allow the implementation of the ARMA Partners scheme that will bring in additional revenue, support and diversity to our Members from a multitude of organisations who all operate within the sphere of residential property management. In addition, Constitutions, Terms of Reference and clearly defined limits of delegated authority were re-written for a number of sub-committees.

The theme of the 2016 Annual Conference was “Raising our Voice”, at which I set out my stall for developing the future aims and ambitions of the organisation. These included growing our membership to improve both the profile and recognition of the ARMA brand, whilst continuing to maintain and improve standards within the industry through our stringent accreditation and audit

Chairman's Overview (cont.)

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9 Annual Report 2016–2017The Association of Residential Managing Agents

process. That way we achieve one of our principal aims. My vision also included continuing with carefully targeted advertising campaigns and shouting about both the benefits of being and employing an ARMA Member in order to improve our overall profile. The national advertising campaign did continue and in late 2016 included high-profile and prominent adverts in the property sections of The Sunday Times, Evening Standard and Metro newspapers over a period of four weeks. Website traffic spiked significantly during the campaign with 84% more people visiting the site than normal over the campaign and a number of new Member applications were also received as a direct result.

I also confirmed that I wanted to continue to increase our influence in the leasehold sector and to maintain our involvement in shaping leasehold legislation. This has included working closely with DCLG, the CMA as well as MPs. It clearly demonstrates our collective ability to continue to punch above our weight in the sector. ARMA is extremely well respected in that regard. Our Members should therefore all feel proud to be a part of the country’s leading residential property management organisation.

Thank you for your continued support of ARMA and, in the meantime, I offer my very best wishes for the year ahead.

William Heneker BSc (Hons), FRICS, FIRPM

Chairman

Chairman's Overview (cont.)

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10 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA Governance ChartAs at April 2017

ARMASOLICITORS

Laceys LLP

ARMAAUDITORS

HartleyFowler LLP

COUNCIL

William Heneker* (Chairman) BSc (Hons), FRICS, FIRPM

Lamberts Chartered Surveyors

Daniel BurkinshawBurkinshaw Block

Management

Colin Cohen FIRPM

Colin Cohen Property Management

Maxine Fothergill MIRPM, AssocRICS

AMAZ Estates & Property Services Ltd.

Tony Hymers* FIRPM, AssocRICSBurlington Estates

Michael Jacobs BSc (Hons), MIRPM, MRICSMichael Laurie Magar Ltd.

Ben Jordan FIRPM

Premier Estates Ltd.

Matt KirkBA (Hons), FIRPM, AssocRICS

Rendall & Rittner Ltd.

Michael LeeBSc (Hons), MRICS, RICS

registered valuerRendall & Rittner Ltd.

Sue Petri* BA (Hons), FIRPM

FirstPort Bespoke Property Services Ltd.

Michael ToogoodBSc (Hons), AIRPMKnight Frank LLP

Tim Townsend MIRPM, MRICS

Hamilton Townsend

* These members also form the Executive Committee

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11 Annual Report 2016–2017The Association of Residential Managing Agents

TECHNICAL COMMITTEE

Matt Kirk (Chair)

Rendall & Rittner Ltd.

Karl Ardern

Warwick Estates Property

Management Ltd.

Vanessa Brandham

Rendall & Rittner Ltd.

Sam Walker

Trinity Estates

Daniel Potter

Mainstay Residential Ltd.

Michael Maunder Taylor

Maunder Taylor

Lisa Warren

Residential Management

group Ltd.

CONFERENCE COMMITTEE

Sue Petri (Chair)

FirstPort Bespoke Property

Services Ltd.

Daniel Burkinshaw

Burkinshaw Block Management

Michael Lee

HML Shaw & Co Ltd.

Michael Maunder Taylor

Maunder Taylor

EDUCATION COMMITTEE

Matt Kirk (Chair)

Rendall & Rittner Ltd.

William Heneker

Lamberts Chartered Surveyors

Daniel Burkinshaw

Burkinshaw Block Management

FINANCE AND CORPORATE

AFFAIRS COMMITTEE

Michael Toogood (Chair)

Knight Frank LLP

Tony Hymers

Burlington Estates

Daniel Burkinshaw

Burkinshaw Block Management

William Heneker

Lamberts Chartered Surveyors

Michael Lee

HML Shaw & Co Ltd.

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Geraldine Shortall (Retired July 2017)

Yen Ly Nguyen AIRPM

Sharon Corette (PA to CEO & COO)Diana West

12 Annual Report 2016–2017The Association of Residential Managing Agents

The ARMA Secretariat Team

Supported by the following team members:

Helen Christie FIRPM

Sean Cahill

Jane Forsyth FIRPM

Karen Finnon

Andrea Kibble (Consultant)

Susannah Dora Majlati

Technical Officers

Communications & Marketing Manager

Membership Officer

Event Operations Manager

Office Manager

Clerk to Regulatory Panel

PA to Chief Executive Officer

Finance

Bookkeeping

Chief Executive OfficerDr Nigel Glen

BA (Hons) (Oxon), MA (Hons) (Oxon) D. Phil (Oxon), MIRPM

Chief Operating OfficerNoella Lee

FIRPM, AssocRICS

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13 Annual Report 2016–2017The Association of Residential Managing Agents

The Association of Residential Managing Agents was established as a company limited by guarantee in 2004. It is governed by an elected Council of 12 members. The ARMA Council reflects the mix of small, medium and large firms in membership. All Council members are directors of ARMA Limited.

The Council’s powers and responsibilities are set out in the Articles of Association underpinned by the Company Bye-Laws. Council members may serve for up to two three-year terms. The Council elects a Chair and Vice Chair and an Honorary Treasurer from among them.

The Chairman of ARMA will serve in that capacity for two years, which may be in addition to their two terms as a Council member. By contravention, the vice chair normally succeeds to the chairmanship.

Council members are appointed as volunteers and receive no remuneration other than reimbursement of necessary and reasonable expenses.

In the reporting year, Martin Perry resigned from Council after serving as Chairman for two years until the AGM on the 9th November 2016 and had actively served on Council since 2010.

Peter Denning also stood down having served his full term on Council from 2007 and was Chairman of ARMA from 2010 to 2012.

ARMA Governance

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ARMA Governance (cont.)

14 Annual Report 2016–2017The Association of Residential Managing Agents

We would like to express our huge debt of gratitude to Martin and Peter for the enormous support and great commitment given to ARMA during their tenure.

Dr Nigel Glen resigned from Council to take up the position of the CEO of ARMA in February 2016.

To ensure an orderly succession in appointments to the Board, the Council appointed a nomination committee.

The Council sought nominations from members. The committee interviewed nominees against set out criteria and also checked nominees were able to devote sufficient time and commitment to the role.

Following the process, the Council nominated three candidates to the AGM for appointment to Council. Members at the AGM voted to approve these appointments.

At the AGM held on 9th November 2016 at the Grand Connaught Rooms where Michael Jacobs, Tim Townsend and Colin Cohen were all appointed to Council.

William Heneker took over the reigns as Chairman of ARMA from Martin Perry.

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15 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA Governance (cont.)

In the report year, the Council met four times and the Finance and Corporate Affairs met four times.

Usually, the Chairman of ARMA, vice chair and immediate past chair make up the Executive Committee. However, with the departure of Martin Perry, Council nominated Sue Petri to the Executive Committee with Tony Hymers resigning as Honorary Treasurer and taking over the position of Vice Chair.

Michael Toogood took over the role as Honorary Treasurer.

Dr Nigel Glen took over in April 2016 as the part-time CEO of ARMA with an external facing role leading ARMA’s policy development and strategic vision for the future and is supported by Noella Lee who is the full-time COO responsible for the day-to-day running of ARMA and the overall performance of the organisation.

ARMA employs a small Secretariat based in Wimbledon, London SW19 who administer day-to-day activities.

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16 Annual Report 2016–2017The Association of Residential Managing Agents

“Your Council is committed to looking at opportunities to raise the current membership numbers, increase the ancillary income and cutting costs particularly by focusing on activities which drive member benefits.”

The Association’s mission remains to provide excellent member benefits at a cost that represents value for money. Whilst it aims to build up some reserves as a contingency against unforeseen expenses, ARMA tries to use the operating surplus in one year to support member services in others.

As reported at the end of the financial year in 2015, the Association had accumulated reserves of £675,941, the large marketing campaign to raise the corporate profile of the Association began and has continued in this financial year, with a total of £146,000 being spent as agreed to raise our profile with a variety of advertising and other marketing initiatives.

As well as the marketing campaign, the Association this year has embarked on a variety of operational and strategic changes, including the relocation of the Secretariat offices, staff changes, a new fully integrated membership system, a new back-office accounting system and planning the first ARMA ACE Awards. Although all of these changes have been initiated with the members’ interest at the forefront, they do come with costs. Your Council took the decision to look at the membership fees structure and to move from a blanket increase to a fairer system of increases, with a small reduction for members who manage less than 500 units, as well as some phased increases for those with larger portfolios. Taken

Financial Report Michael Toogood BSc (Hons), AIRPM

Michael Toogood BSc (Hons), AIRPM

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17 Annual Report 2016–2017The Association of Residential Managing Agents

Financial Report (cont.)

together with other changes these are designed to ensure the long-term financial stability of the Association.

Last year we talked about the future, unknowns within our sector and the decision to draw on the Association’s reserves to provide member benefits. We have now completed two years of the ARMA-Q regulatory regime and there are questions remaining as to future finances:

• Have we done enough to deal with the increased pressure and administrative costs the Association has and to continue to give the same quality of service to the membership?

• The future challenges our sector faces are likely to be tough, with an increased regulatory stance with respect to non-compliant members. So, are we sufficiently capitalised to cope with the generally litigious environment in which we operate and the associated legal costs of defending the Association?

Income for the Association dipped slightly (1.82%) this year. The Association has traditionally had three main income streams - membership subscriptions, training courses and the Annual Conference. Your Council is committed to looking at opportunities to raise the current membership numbers, increase the ancillary income and cutting costs particularly by focusing on activities which drive member benefits.

Membership numbers for full corporate member at the end of April 2017 were 249 with 29 new member applications awaiting approval. In the new financial year ARMA Partners, a new membership category, will be offered to existing Affiliates with additional benefits. ARMA Partner status is open to any organisation that is not directly involved

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“The Finance and Corporate Affairs Committee (FACAC) provides strategic decision-making along with robust and inquisitive monitoring of the finances of ARMA in addition to corporate affairs which has worked well over the year.”

18 Annual Report 2016–2017The Association of Residential Managing Agents

Financial Report (cont.)

in the practice of block management but whose services or products are essential for managing agents. The granting of ARMA Partner status and entitlement is entirely at the discretion of the ARMA Council who may withdraw or amend it at any time without appeal.

Training course income has not performed as well as last year with the current year figures being similar to those two years ago. However, we are still providing in-house courses to member firms to assist with their staff development and CPD requirements. Now the Association has moved to larger premises, with the added benefit of a bespoke training facility, we continued to offer smaller group training courses on request.

After taking on board members’ feedback on the Annual Conference last year, the Secretariat investigated alternative venues which could offer the Conference, combined with a more convenient location and the Grand Connaught Rooms in Holborn was chosen. Income for the Conference increased and we are pleased to confirm that the event was a success with an overall gross profit for the conference of 28% (2016: 21%).

Expenditure was up on last year (7.21%) with most of this increase as expected per the budget. However, the area of legal and professional fees has exceeded the original budget figure. This was

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19 Annual Report 2016–2017The Association of Residential Managing Agents

Financial Report (cont.)

due to a legal dispute which the Association faced in 2016-2017 and was settled in June 2017.

As a result of these investments mentioned above, the results this year show a deficit of £182,765 compared with the previous year’s deficit of £71,507.

The Finance and Corporate Affairs Committee (FACAC) has continued to meet throughout the year with Michael Toogood (Chairman), Daniel Burkinshaw, Colin Cohen, William Heneker, Tony Hymers and Michael Lee. The meetings are also attended by Nigel Glen (CEO), Noella Lee (COO) and Andrea Kibble, ARMA’s external consultant accountant. The Committee provides strategic decision-making along with robust and inquisitive monitoring of the finances of ARMA in addition to corporate affairs which has worked well over the year.

The Association continues to prepare statutory financial statements, audited by Hartley Fowler LLP. These are available on the members’ only section of the website, but if hard copies are needed please contact the office.

Moving forward to 2017-2018, the aim of the Association is to build up the reserves and strengthen the balance sheet. It is hoped that the short-term losses that the reserves have absorbed will not continue and the long-term objective is to continue to create stability in the Association’s finances, to grow the high level of professionalism within the property management sector and for ARMA to take the lead in regulation and continue to campaign for improvements in relevant legislation and policy.

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20 Annual Report 2016–2017The Association of Residential Managing Agents

Expenses

Expenses

2016–2017

2016–2017

Membership Subscriptions

Conference Income

Training Course fees

ARMA Audit fees

Other Income

ARMA Accreditation fees

Interest received

Total

Total

Membership services

Conference costs

Training Course costs

ARMA Regulatory costs

ARMA Audit costs

Secretariat & Office costs

Corporation tax

£448,382

£322,618

£147,563

£138,030

£96,188

-

£672

£1,153,453

£1,336,218

£246,015

£232,751

£65,537

£72,065

£142,736

£563,683

£13,431

Financial Report (cont.)

For the year ended 30th April 2017

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7.21%

-1.82%

21 Annual Report 2016–2017The Association of Residential Managing Agents

Financial Report (cont.)

Expenses

Expenses

2015–2016

2015–2016

Membership Subscriptions

Conference Income

Training Course fees

ARMA Audit fees

Other Income

ARMA Accreditation fees

Interest received

Total

Total

Membership services

Conference costs

Training Course costs

ARMA Regulatory costs

ARMA Audit costs

Secretariat & Office costs

Corporation tax

£423,948

£313,620

£219,862

£94,971

£103,796

£16,995

£1,689

£1,174,881

£1,246,388

£232,882

£244,682

£115,554

£75,925

£98,448

£461,174

£17,723

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It has been yet another busy year for ARMA’s Technical Committee (also known as Techcom), encompassing the ongoing work of drafting, revising and approving the ARMA Guidance Notes available to Members and as advertised on each weekly Members’ Circular. As well as ensuring there is an unrivalled wealth of knowledge to our members we also have 41 free Advice Notes for consumers on the public side of our website which Techcom has also been working on during the year.

On behalf of ARMA, I would like to record our thanks to the members of the committee who all give their time and efforts freely (and mostly without complaint), allowing ARMA’s membership to benefit from their expertise and experience. Our sincere thanks go to Karl Ardern, Vanessa Brandham, Michael Maunder Taylor, Daniel Potter, and Lisa Warren for their sterling contributions.

During the year, we said a grateful goodbye to James Tarr and warmly welcomed Daniel Steer to the committee who will now look after the vital area of Contracts and Maintenance.

We also said a temporary farewell and good luck to Helen Christie for her maternity leave. Helen’s role as Technical Officer has been very ably covered by Lisa Warren.

“There are now more than 100 Guidance Notes. The subjects are continually under review and the committee along with our Technical Officer are always reviewing which ‘new’ subjects may require a Guidance Note.”

22 Annual Report 2016–2017The Association of Residential Managing Agents

Matt Kirk BA (Hons), FIRPM, AssocRICS

Technical Committee ReportMatt Kirk BA (Hons), FIRPM, AssocRICS

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There are now more than 100 Guidance Notes. The subjects for Guidance Notes are continually under review and the committee along with our Technical Officer are always reviewing which ‘new’ subjects may require a Guidance Note to ensure that the membership is well served and has access to relevant and helpful information. By way of example, the Guidance Notes worked on this year include The Heat Network (Metering & Billing) Regulations 2014, Noise and vibration, sub-letting, the code for sustainable homes, electrically powered gates and many others. The work plan for Techcom ensures it is methodically working through the Guidance Notes that require review and revision, as well as producing new Guidance Notes.

Technical Committee Report (cont.)

23 Annual Report 2016–2017The Association of Residential Managing Agents

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24 Annual Report 2016–2017The Association of Residential Managing Agents

Along with updating and drafting new Guidance Notes and Advice Notes, Techcom also continues to regularly review all the existing Guidance Notes to ensure they remain relevant and of course in line with the ARMA-Q Standards.

As a reminder to Members, the Guidance Notes relate to all aspects of residential long leasehold management and they are accessible via the member’s area of the ARMA website (under the Documentation Library tab) and cover the following categories:

Section A Landlord & Tenant Legal MattersSection B Health & SafetySection C Maintenance/Contractors/ConstructionSection D Clients: Companies & AccountingSection E Property AdministrationSection F Business ManagementSection G Miscellaneous (items falling outside of the above categories)

As well as Techcom members, ARMA draws on the expertise of its Health & Safety Consultant, Mark Snelling, as well as the ARMA Health & Safety Forum, again made up of ARMA members working together to share knowledge, help other ARMA members, and to help shape wider public policy where possible. A member of the H&S Forum also sits on Techcom. 

“ARMA draws on the expertise of its Health & Safety Consultant, Mark Snelling, as well as the ARMA Health & Safety Forum.”

Technical Committee Report (cont.)

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25 Annual Report 2016–2017The Association of Residential Managing Agents

More generally, whilst every effort is made to ensure the Guidance Notes and Advice Notes are comprehensive and correct if you believe that they could be improved (or even corrected in some respect!) please do not hesitate to get in touch. We are here to assist you as the membership and wish to produce Guidance Notes and Advice Notes that are useful for you and your consumers and are of the highest professional quality. Also, if there is an area that you feel would benefit from a new Guidance Note or Advice Notes on a topic we do not as yet cover, again please let us know. We hope the membership continues to find the Guidance Notes and Advice Notes useful and valuable. The committee looks forward to continuing to serve you in the forthcoming year.

On a personal note this will be my final Annual Report as Chair of the Committee and I wish to record my thanks to the ARMA Secretariat and Council for their support, as well of course as all of the aforementioned committee members who have either produced their work promptly and accurately, or where this was not the case have borne my chasing e-mails and phone calls with good grace.

I wish the new Acting Chair Lisa Warren the very best of luck with this important responsibility and know that her experience, expertise, and professional no-nonsense approach will serve the committee and ARMA members well.

Matt Kirk BA (Hons), FRIPM, AssocRICS

Chair of ARMA Technical Committee

Technical Committee Report (cont.)

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26 Annual Report 2016–2017The Association of Residential Managing Agents

Following last year’s report of fluctuations in membership throughout the year, this year’s report for the year ending 30th April 2017 is virtually a carbon copy.

Members

‘A company successfully trading as a managing agent in residential long leasehold management for at least two years’.

The number of members at year-end was 251 (2015-2016 – 251). Ten members resigned during the year (six due to mergers, acquisitions, transfer of portfolio and re-structuring) and one member was downgraded for failure to implement their Improvement Plan.

Three firms felt that the demands of membership were too great for their size/business model and one gave no reason. Two RICS member firms were included in the resignations and two RICS firms joined as new members giving a 31% ratio of ARMA/RICS member firms.

“As always, the greatest concentration of portfolio size/units managed remained in the 501 – 2,000 banding (111) representing 44% of membership.”

Membership Report

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Membership Report (cont.)

As always, the greatest concentration of portfolio size/units managed remained in the 501 – 2,000 banding (111) representing 44% of membership.

Members portfolio

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Membership Report (cont.)

Associates

‘Managing agents working towards becoming a Member, but who do not yet meet the two-year trading rule.’

The number of Associates at year-end was 21 (2015–2016 - 19) and all are due to convert to Member status within two years.

Affiliates

Companies that are either commercial service providers that are not managing agents, non-commercial companies or organisations involved in the management of leasehold flats, or housing associations (registered providers). The number of Affiliates at year-end was 85 (2015-2016 – 82). Of these 35 were due to convert to Partner status as of the beginning of May 2017.

Partners

A company not directly involved in block management but whose services are essential for managing agents. This includes commercial service providers such as accountancy firms, solicitors, insurance, management services, debt collection, etc.

“The ARMA Partner status was established at the beginning of the 2016-2017 year to provide enhanced business benefits to companies marketing their goods and services to ARMA members.”

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Membership Report (cont.)

This status was established at the beginning of the 2016-2017 year to provide enhanced business benefits to companies marketing their goods and services to ARMA members.

Membership applications

At year-end, 35 applications remained ‘in play’ pending technical check of the evidence submitted and are therefore not reflected in the above figures. Of these, 29 were for Membership, two for Associate status, three Associates converting to Membership at the end of their two-year period, and one new housing association.

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30 Annual Report 2016–2017The Association of Residential Managing Agents

Overall aim of the ARMA Audit

ARMA members will undergo an audit check once every three years. The overall aim of the audit is to provide assurance to ARMA, its members, clients and leaseholders that accredited members of ARMA are complying with the ARMA Consumer Charter and Standards. By being open to scrutiny in this way ARMA members are distinguishing themselves from competitors through a commitment to delivering high quality work for consumers.

Audit team

We have commissioned the Royal Institution of Chartered Surveyors (RICS) Regulation team to carry out the audits for us. They will cover all of the ARMA Consumer Charter and Standards and look at issues that are not related to client money protection for jointly regulated firms.

“We share a common interest with RICS to raise standards and a significant proportion of ARMA member firms are also “Regulated by RICS”. This joint approach removes duplication of audit activity and reduces the costs and inconvenience of overlap.”

Audit Report

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Audit Report (cont.)

We share a common interest with RICS to raise standards and a significant proportion of ARMA member firms are also “Regulated by RICS”. This joint approach removes duplication of audit activity and reduces the costs and inconvenience of overlap for the firms that might otherwise have been subject to two separate reviews. RICS has established a large and capable regulatory team that has built up skills and expertise over the last 25 years.

Scope of Audit

The audit tests the member against the ARMA Standards by reviewing their processes and procedures, enquiries with staff and sample testing of evidence.

Each member will be audited on one of the three scopes set out below. The scope chosen for each member will be on a random basis although where possible we will be looking to ensure that over any three-year period members will have been audited on each scope.

Please note that all audits include reviewing client money (Standard 4.0 Financial Matters).

Please refer to the Consumer Charter & Standards Edition 2A which was published in October 2016 and is available to be downloaded from our website.

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32 Annual Report 2016–2017The Association of Residential Managing Agents

Audit Report (cont.)

Scope A Standards 2: Instructing a Managing Agent3: Client Matters4: Financial Matters

Scope B Standards 4: Financial Matters5: Management Matters

Scope C Standards 4: Financial Matters5: Management Matters6: Legal Matters7: Disputes & Terminations

ARMA 2nd Edition Guide to Audit

The Guide to Audit was updated in June 2016 by the 2nd Edition Guide to Audit.

All ARMA members should ensure that they read this document fully in advance of their audit and this can also be downloaded from our website.

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“The overall aim of the audit is to provide assurance to ARMA, its members, clients and leaseholders that accredited members of ARMA are complying with the ARMA Consumer Charter and Standards.”

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Audit Report (cont.)

Summary of Findings Report

On the 28th October 2016 ARMA issued out through a special circular a summary of audit findings from year 1 (2015-2016) to highlight areas that the audits found were unclear or where errors were commonly made.

Whilst the report summary covered audits made prior to the introduction of the RICS Code 3rd edition, effective 1st June 2016 and the Standards 1st Edition, ARMA ensured that within the report under solutions this was taken into account when providing guidance to our members.

As an example, the report provided examples of compliant Client Bank Accounts from 1st June 2016 on the changes following the introduction of the RICS 3rd edition as of 1st June 2016 where “All client money that is service charge money should be held in a separate bank account that includes words in its title to clearly indicate that it is ‘client money’. (Page 6 & 7 of the report refers to examples.)

For further information: This document can be viewed under Members Circulars – October 2016. Summary of Audit Findings – Year 1 (2015/2016) Published: 28/10/2016.

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34 Annual Report 2016–2017The Association of Residential Managing Agents

Audit Report (cont.)

Members Guidance Annual Declarations

On the 24th October 2016 ARMA provided a Guidance Note regarding changes to the Annual Declaration between Editions 1 and 2A.

This covered the requirement of the Annual Declaration with the ARMA Standards and provided clear information for members to use with a Q and A section covering a whole host of items e.g. administration charges and in-house service providers.

For further information: This document can be viewed under Members Circulars – October 2016. Special Circular – Consumer Charter & Standards Revised Edition 2A. Refer to link regarding Guidance Note regarding the changes to the Annual Declaration between Editions 1 and 2A.

Guidance and Information

At the time of writing this report the Regional Briefings undertaken during 2017 covered ARMA Audits and were presented by the RICS audit team followed by a discussion on the audit process with Dr Nigel Glen, CEO of ARMA.

Dr Nigel Glen has written an article in the Autumn issue 2017 of the AQD magazine to follow up on this session of the Regional Briefings. This can be downloaded from the ARMA website.

Towards the end of 2017 we will produce a Summary of Findings Report from Year 2 (2016-2017) which will be issued out through a Special Circular.

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35 Annual Report 2016–2017The Association of Residential Managing Agents

Training ReportGeraldine Shortall FIRPM

During the year, 39 courses in total were run (eight of which were in-house) with 737 attendees and no cancellations due to insufficient numbers.

As has been the case for many years, ‘TC1 Introduction to Residential Property Management’ was top of the leaderboard, with 12 courses over the year and 171 delegates).

Of the eight in-house courses, four were TC1 and significantly, two delegates from DCLG attended a TC1 at ARMA’s offices. The use of the ARMA office boardroom in Wimbledon for courses up to 14 delegates has supplemented our Broadway House central London venue and has enabled us to maintain costs at current levels in the face of rising venue hire costs.

However, in conjunction with the popularity of the ‘TC55 Basic Health & Safety’ Introductory course, it would appear there is a firm appetite for training in this sector from the outset of the career path.

Three new courses were introduced during the year: Basic Health & Safety; Company Secretary Duties; and Insurance Workshop, all of which proved popular.

Impressively, one of the four Sector 20 courses ran was in-house for a firm of lift consultants long associated with ARMA.

“Three new courses were introduced during the year: Basic Health & Safety; Company Secretary Duties; and Insurance Workshop, all of which proved popular.”

Geraldine Shortall FIRPM ARMA Technical Officer (retired)

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‘TC11 Service Charge Accounts Guidance’ was, as always, the most popular after TC1 – five courses were run (one in-house) with 120 delegates attending. A regular attendee (external accountant) commented: “I cannot imagine how I would have kept up to date with current best practice and developments in the service charge sector without these courses.”

ARMA/Brethertons Webinars

A total of 17 webinars were run during the year (same as previous year) but with some changes in titles. The major highlights were:

Most popular: ‘It’s Not My Fault! 3rd Party and Water Damage’ with 213 registered.

Second most popular: ‘New Insurance Legislation – Are you ready?’ with 89 registered.

Third most popular: ‘Understanding Residential Long-Term Leases’ with 87 registered.

Least popular: ‘Applications to appoint a manager’ with 9 registered.

The webinars can be booked/viewed from Brethertons website: www.brethertons.co.uk/site/events/webinars

Training Report (cont.)

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37 Annual Report 2016–2017The Association of Residential Managing Agents

Ombudsman Report

There was a total of 143 Ombudsman decisions involving ARMA members during the year.

Of the reported cases, 49 resulted in “no award” effectively finding in favour of the agent. 82 cases had an award less than £100 of which £8 was the lowest. The highest award was £3,448 (this contained a large element of required refund and a goodwill payment).

The underlying trend remains “lack of communication leading to an unnecessary escalation of the initial complaint” and “a shortfall in customer service”.

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38 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA’s public profile continues to grow and, on 20th December 2016, we had the honour of being named in MP for Poplar and Limehouse Jim Fitzpatrick’s speech to the House of Commons debate on Leasehold and Commonhold. Mr Fitzpatrick stated: “Some matters are easier to resolve than others, and some will require legislation, but it is not all bad news. The industry is also trying to clean up the sector, with the Association of Residential Managing Agents, led by Dr Nigel Glen, introducing ARMA-Q, its code of practice for property management companies, and the appointment of a regulator for the sector to oversee and assist in dispute resolution procedures”.

Staying with Parliament, ARMA regularly attends the All-Party Parliamentary Group (APPG) on leasehold reform which, to date, has focused on ground rent escalation but will likely expand further to take into account the recommendations in the Government White Paper, issued on 7th February 2017. The White Paper was broad in sweep, with those parts concerning property management including to “consult on a range of measures to tackle all unfair and unreasonable abuses of leasehold”, ground rents with short rent review periods and the proliferation of leasehold houses. The White Paper also echoed support for the leasehold reforms in the Law Commissions 13th Programme of Law Reform which includes looking at Section 20 limits, the work of the APPG and the potential

Working For Members Policy & Campaigning Dr Nigel Glen BA (Hons) (Oxon), MA (Hons) (Oxon),

D. Phil (Oxon), MIRPM

“ARMA regularly attends the All-Party Parliamentary Group (APPG) on leasehold reform which, to date, has focused on ground rent escalation but will likely expand further to take into account the recommendations in the Government White Paper.”

Dr Nigel Glen BA (hons) (Oxon), MA (Hons) (Oxon), D. Phil (Oxon), MIRPM

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39 Annual Report 2016–2017The Association of Residential Managing Agents

re-invigoration of Commonhold. We continue to engage with the Law Commission, the Department for Communities and Local Government (DCLG) and the APPG on all of these matters.

Another Government drive is the March 2017 Client Money Protection (CMP) paper. If passed it will be mandatory for letting agents and managing agents to subscribe to a suitable CMP scheme. In the meantime, ARMA is working on identifying suitable schemes and obtaining preferential rates for members.

We have been involved in discussions with HMRC regarding VAT being charged (or not as the case may be) on staff such as caretakers and concierges. Some members do charge VAT, some do not and as such the rules are obviously not clear. We have explained to HMRC that the issue is far more complex than they at first thought, with potentially huge implications for the industry and leaseholders alike. We gave guidance on the implications of whether to charge VAT or not and we await their thoughts.

Finally, with respect to Government, at the LEASE conference in February, the then Minister of State for Housing and Planning, Gavin Barwell, welcomed ARMA’s new plans to help RMC and RTM’s who operate without a managing agent in place by offering them a limited membership option.

Working For Members (cont.)

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Working For Members (cont.)

40 Annual Report 2016–2017The Association of Residential Managing Agents

Moving on to matters directly under ARMA’s control the subject of helping leaseholders to understand their leases is one that benefits both leaseholders and managing agents alike. In conjunction with the IRPM, RICS, LEASE and ARHM, ARMA helped to write a series of guidance notes for distribution to the public.

The first benchmarking survey was completed and gave us tremendous insight into the economics of our Members’ businesses. Of particular interest was the low profitability of our industry. It became apparent that many smaller firms are only profitable because the owner was putting his or her time into the business for free.

Outside of the benchmarking, we looked at the size of ARMA and the results were surprising at first glance. Between them, ARMA members manage over a million homes, spend over a billion pounds a year into the local economy and hold over a billion and a half pounds of service charge and reserve funds on behalf of their clients. A significant business indeed.

The advertising campaign in the national press featured “trust” as the key theme. Banner ads on sector and consumer websites proved particularly successful and all around we saw a huge increase in traffic to our website and a number of members reported gaining new business as a result.

“ARMA members manage over a million homes, spend over a billion pounds a year into the local economy and hold over a billion and a half pounds of service charge and reserve funds on behalf of their clients. A significant business indeed.”

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41 Annual Report 2016–2017The Association of Residential Managing Agents

As ARMA CEO I attend a wide number of industry events, conferences and seminars in order to promote the organisation itself and to represent the interests of our members to the industry. We are an active organisation and rather than just attend, wherever possible I will make a presentation or sit on a panel to debate issues.

The new ARMA Charter & Standards (Version 2A) was issued in response to changes in legislation and distributed to members. A working group was set up to review and update the ARMA Bye-Laws, which was introduced in the second half of 2017.

Finally, we launched our first in a series of bespoke schemes for members. The ARMA Energy scheme is available only to ARMA Members and should offer a way to reduce prices to your clients, reduce your administration and to take the risk surrounding default energy contracts out of your business. It has been taken up even more enthusiastically than our most optimistic projections and continues to grow. Other initiatives in the pipeline will feature in next year’s Annual Report.

Working For Members (cont.)

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For information on the advantages of appointing an ARMAmember contact:

020 7978 2607 · www.arma.org.uk @ARMAleasehold

Setting the Standards in Property Management

Whether you are a leaseholder, residents’management company, developer, landlord

or freeholder - you need a managing agent youcan rely on to professionally manage

your apartment block.

So look for the ARMA logo for accreditedmanaging agentswho are compliant, audited, independently regulated,

transparent andwill hold your service charge inTRUST.

TRANSPARENTSTANDARDS

AUDITEDSERVICE

REGULATED

42 Annual Report 2016–2017The Association of Residential Managing Agents

Marketing ReportSean Cahill

ARMA ran its second consecutive national marketing campaign during November 2016 in conjunction with other significant marketing initiatives throughout the year, all aimed at raising the profile of ARMA and its members. I am pleased to report on these activities and their outcomes.

National marketing campaign

Our objective was to raise awareness of ARMA and to encourage people with the power to appoint managing agents to choose an ARMA member.

“Campaign effectiveness can be measured in a number of ways. Perhaps the most dramatic impression was the huge increase in visitors to our website during the campaign.”

Sean Cahill ARMA Communication & Marketing Manager

The campaign, entitled TRUST, comprised press advertising in the Evening Standard, The Sunday Times and Metro. This was complemented by Google pay-per-click advertising (the ads you see at the top of Google search results) and online banners on websites popular with our target audience.

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Marketing Report (cont.)

We chose to concentrate our spend in a single month as this gave us more bang for our bucks than would a prolonged period. With a limited budget, we were not able to go regionally, however The Sunday Times gave us national coverage as did the pay-per-click and online campaign.

Campaign effectiveness can be measured in a number of ways. Perhaps the most dramatic impression was the huge increase in visitors to our website during the campaign – see graph below – where we can see a direct correlation between people seeing our ads and visiting our website.

0

01/10

/2016

17/10/2

016

02/

11/2

016

18/11/20

16

04/

12/2

016

200

400

600

800

1000

1200

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Marketing Report (cont.)

44 Annual Report 2016–2017The Association of Residential Managing Agents

Some major highlights:

• Website traffic increased by 84%• Number of website visits rose dramatically• Average number of visits per month is around 11,800.

In November, this rose to 21,506• Average number of visitors per month is usually 8,300.

This increased to 15,872 • Most importantly, 64% were first time visitors (so people

who had previously little awareness of ARMA).

We made the advert and banners available for members to use in their own marketing and this proved popular with a significant number of members taking up the offer to use on websites, newsletters, email signatures, etc.

We are highly active on social media platforms, Twitter (@ARMAleasehold) and Linkedin, which again act to raise our profile publicly and in the sector.

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Marketing Report (cont.)

Annual Conference 2016

ARMA’s 21st Annual Conference was held on 10th November 2016 at the Grand Connaught Rooms. With 670 delegates present, and moderated by broadcaster and journalist Joshua Rozenberg, newly elected Chairman William Heneker got proceedings underway by explaining the theme of the day: ‘Raising Our Voice’: growing ARMA membership; increasing our influence in the debate; and increasing our involvement in shaping legislation.

Nigel Glen gave an overview of the past year and some of the new initiatives in the planning stage. We said farewell to our Independent Regulator, the Rt Hon Keith Hill, and welcomed his successor, Sally Keeble.

Delegates were updated on the first ARMA Benchmarking Survey, and Philip Rainey QC presented a strong argument in favour of legislative reform. Keynote speaker, Jim Fitzpatrick MP, joint chair of the All-Party Parliamentary Group on Leasehold and Commonhold reform, gave a parliamentary view on reform and an expert panel debated this at length.

“We participated at a senior level in numerous Government, industry and leaseholder events over the year. Wherever possible we look to present the work ARMA is engaged in to audiences.”

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Marketing Report (cont.)

Further sessions included a view on how firms can gain trust in their organisations, a technical update, Construction (Design & Management) Regulations, and a demonstration on the dangers of cybercrime.

Legal double act Justin Bates and Amy Just provided an update on the most important legal developments in the year.

Regional Briefings

Six Regional Briefings were held between May and June 2016 in Exeter, London (2), Manchester, Birmingham and Southampton and attended by 349 members.

The Briefings offered the opportunity to network with fellow members over lunch, followed by a review of ARMA initiatives and current topics, including an update from the CEO, technical developments, The Insurance Act 2015, accounting for RMCs, legal developments and a marketing review.

Member communications

We provide members with timely updates, Association information, industry and legal news via our weekly Members’ Circular.

This is supplemented by in-depth articles in our printed newsletter, AQD. Four issues were produced in the year providing members with updates and sector news. We are grateful to members and affiliates that contributed articles throughout the year

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Marketing Report (cont.)

Event participation and lobbying

We participated at a senior level in numerous Government, industry and leaseholder events over the year. Wherever possible we look to present the work ARMA is engaged in to audiences. During the year this included an LKP (Leasehold Knowledge Partnership) roundtable in the House of Commons, the National Housing Federation Conference, the All-Party Parliamentary debate on Leasehold and Commonhold reform in the House of Commons, LEASE Annual Conference, LEASEHOLD 2017, VAT on staff discussions with HMRC, FTTP Stakeholder, Section 20 roundtables and numerous consultation paper responses. Nigel Glen is actively involved in lobbying MPs, Government ministers and senior officials from the Department for Communities and Local Government.

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48 Annual Report 2016–2017The Association of Residential Managing Agents

Contact Us

ARMA INDEPENDENT REGULATOR & PANELANNUAL REPORT 2016–2017

The Association of Residential Managing Agents Ltd3rd Floor, 2–4 St George's Road, Wimbledon, London SW19 4DP Company Limited by Guarantee Registered in England No. 5128635 at the above address VAT Number: 707 3118 58

Telephone 020 7978 2607

[email protected]

@ARMAleasehold

Design by BrandFour

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ARMA is a trade association for residential property managing agents in England and Wales. We offer a programme of self-regulation that our members voluntarily subscribe to, assisting them in staying up to date with legal requirements and best practice.

ARMA members are regulated by an independent panel made up of eight lay members. Each has been specially selected for their knowledge of the industry. They have a collective experience spanning law, accounting, consumer, surveying and regulatory professions. Leaseholders are also represented on the panel.

The role, powers and procedures of the Regulatory Panel and any Appeal Panel are set out in the Bye-Laws and Operating Procedures that are agreed and published by the Council.

The regulation of ARMA members is completely independent. No one on the panel is connected with ARMA or its members.

If an ARMA member is found to have breached our Bye-Laws, Consumer Charter or Standards the matter will go before our Regulatory Panel but they cannot consider complaints unless and until all appropriate avenue of redress has first been exhausted.

Cases will not normally be accepted where the case relates to a matter that is over 24 months old from the day the alleged incident took place. The only exception to this will be where criminal proceedings have been in progress.

The Regulatory Panel

Sally Keeble (Chair)Former Minister for Housing(Commenced appointment 9th November 2016)

Rt Hon Keith Hill (Chair)Former Minister for Housing & Planning(Retired 9th November 2016)

Claire AndrewsBarrister

Carolyn Carter Accountant

Judith Goulden Solicitor

Alun JonesBarrister Alan WalkerRMC Director & Leaseholder

Jan WilcoxChartered Surveyor(joined 8th December 2016)

Steve WinfieldIndependent Director

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ARMA Regulation

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ARMA Regulation (cont.)

The Regulatory Panel is able to impose a number of sanctions on ARMA members.

It will be able to:

• Require a member to undertake training• Require an apology with acknowledgement of a specific action

to be taken to remedy a complaint• Issue a formal warning by letter• Impose administration costs and fines• Suspend a member from membership for a specified period

and on conditions• Recommend to the Council to expel a member from ARMA.

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ARMA Regulation (cont.)

Overview

Since last November there have been some important developments in the operation of the regulatory regime, in particular, the following:

ARMA Secretariat now has an established triage system. This means that requests for advice, inquiries about how to make a complaint and other similar routine queries are handled by ARMA staff and only substantive complaints are passed to the Clerk to the Panel. This has greatly reduced the volume of work for the Clerk, making it more manageable.

The number of disciplinary cases brought to the attention of the Regulator has been limited, and fewer have required a full disciplinary investigation. At the time of writing only one has resulted in a disciplinary hearing. A great deal of time and attention has been taken up in bringing to a conclusion challenges to the system that Keith Hill referred to in his last report.

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52 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA Regulation (cont.)

Disciplinary cases

Regulatory action

Under ARMA’s Operating Procedures the overarching role of the Regulator and Independent Regulatory Panel is “to provide independent regulation of the corporate member firms of ARMA, with fair and proper procedures, in order to maintain consumer and public confidence in the quality of services offered by those member firms. The Regulator and Regulatory Panel will carry out their regulatory activities in a way that is transparent, accountable, proportionate and consistent. It shall be the aim of the Regulator and Regulatory Panel to assist regulated entities to understand and meet regulatory requirements more easily and to thus achieve compliance with the rules of ARMA membership”. Complaints brought are considered in the light of ARMA rules and with the aim of achieving improvement wherever possible.

Since November 2016, 17 cases have been brought to the Regulator’s attention, through complaints, via the Ombudsman offices or the courts, or were handed over by the previous Independent Regulator, or referred by ARMA.

“The Regulator and Regulatory Panel will carry out their regulatory activities in a way that is transparent, accountable, proportionate and consistent.”

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53 Annual Report 2016–2017The Association of Residential Managing Agents

Of theres:

ARMA Regulation (cont.)

Two complaints are suspended pending further information from the complainants.

In three cases initial inquiries showed there were no grounds to proceed with investigations. This does not necessarily mean that the complaints were frivolous or ill-founded. In some cases they came from leaseholders who had strong views about what had happened. However, there was no evidence of any breach of ARMA rules and therefore no basis for regulatory action.

In three cases preliminary inquiries are still being made, and it is not clear yet whether these will result in any further action.

In four cases, there were investigations, in some cases extensive and in some cases including the issuing of a Notice of Investigation and Notice of Complaint. However, bearing in mind the need to look at every stage for improvements in service rather than sanction, the companies were pressed for evidence of steps taken to improve services in a manner consistent with the ARMA standards and asked for assurances as to continuing improvement. These assurances were provided the cases were closed.

1. 2.

3. 4.

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ARMA Regulation (cont.)

Three cases are still continuing after Notices of Investigation and Notices of Complaints have been issued.

One panel hearing has taken place on a case that was referred by ARMA to the previous Regulator in respect of an ARMA Audit. Work continues with this company to assist it to meet regulatory requirements and thereby achieve compliance with the rules of ARMA membership.

One case was closed as a result of the two-year rule introduced by Council.

5. 6.

7.

A trend has been noted towards more complex cases involving multiple issues, often some service issues, such as block maintenance or repairs and financial management or accounting issues. Very often the complaints also referred to an alleged lack of effective communications, and in some cases complainants were more focused on issues relating to communications than on the services themselves. Careful consideration has been given as to how best to respond to these complaints and ensure that the multiple issues raised are addressed effectively. This trend has also been evident in complaints to the Ombudsman offices.

Five cases have included complaints relating to fire safety, including delays in implementing recommendations in fire safety assessments. In light of recent events in London, members may want to bear in mind the importance of ensuring that fire risk assessments are properly carried out, communicated to clients, implemented and reviewed. Health and safety factors receive a high priority with the Regulator in deciding on regulatory action.

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55 Annual Report 2016–2017The Association of Residential Managing Agents

ARMA Regulation (cont.)

Accreditation oversight

Following on the established pattern, the third meeting of the Regulatory Panel was held to scrutinise the ARMA accreditation procedures. The Regulator, four Panel members and the Clerk were in attendance.

Conclusions

The increase in sales of leasehold properties has brought increased attention to the sector and validated ARMA’s prescience in setting up the ARMA Standards and system of independent regulation. Self-regulation of the sector is valuable in improving standards and transparency. Meanwhile, in taking forward ARMA’s commitment to effective self-regulation, the Regulatory panel recognises the need to deliver service improvements in a commercial setting while also meeting the needs of a trade association.

“The Regulatory panel recognises the need to deliver service improvements in a commercial setting while also meeting the needs of a trade association.”

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Contact Us

The Association of Residential Managing Agents Ltd3rd Floor, 2–4 St George's Road, Wimbledon, London SW19 4DP Company Limited by Guarantee Registered in England No. 5128635 at the above addressVAT Number: 707 3118 58

Telephone 020 7978 2607

[email protected]

@ARMAleasehold

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